Accion Invests in Mexican Microfinance Institution CrediConfia To Help Expand Financial Inclusion to Underserved Regions
BOSTON, July 23, 2012 /PRNewswire/ -- Accion®, a pioneer and leader in global microfinance, today announced that it has completed an investment totaling US $1.9m in CrediConfia, a microfinance institution (MFI) providing financial services to micro-entrepreneurs and low-income households in rural and semi-urban areas in east-central Mexico.
The investment provides Accion with a nine percent stake in CrediConfia, a board seat, and the opportunity to engage in a three-year service contract providing governance, management and technical support to the MFI.
A key element of that support will include deployment of Accion's credit technology to expand and improve the scope of CrediConfia's products, improve loan quality and profitability and, in turn, help position CrediConfia as a leading provider of microfinance products and services in Mexico.
CrediConfia's goal is to serve the economically active poor in Mexico's informal economy by offering microcredit loans to help expand their businesses and improve their living standards. Currently, CrediConfia serves 21,500 clients through a network of 25 branches covering the states of Mexico, Puebla, Hidalgo and Michoacan.
"We have seen major strides in Mexican microfinance in recent years, but there are many regions of the country that remain underserved," said Michael Schlein, Accion President and CEO. "We are impressed with CrediConfia's rapid growth, and excited to be able to help accelerate that growth."
"Accion has proven itself a highly effective partner to developing MFIs in Mexico and throughout Latin America," said John Donnelly, President of CrediConfia. "We are delighted to be able to tap their patient capital, human as well as financial."
CrediConfia – Desarrolladora e Impulsadora de Negocios, S.A. de C.V., SOFOM E.N.R. – was established in Mexico in 2007 with the goal of contributing to a better quality of life for its clients through timely and adequate financial services that meet business needs profitably and over the long term. It provides loans to small and micro entrepreneurs who live primarily in rural and semi-urban areas. The company currently has 21,500 customers, 350 employees, three regional offices in addition to its headquarters in Mexico City, and 25 branches. Its goal is to become a strong Mexican financial institution with a national presence, known for quality, productivity and transparency. For further information, visit www.crediconfia.com.
Accion is a global nonprofit dedicated to building a financially inclusive world, with access to economic opportunity for all, by giving people the financial tools they need to improve their lives. A world pioneer in microfinance, Accion has helped build 62 microfinance institutions in 31 countries reaching millions of clients on four continents over the last 50 years. The Accion U.S. Network is the largest microfinance network in the country and, since inception, has served hundreds of thousands of clients with loans and support. For further information, visit www.accion.org.
®Accion is a registered trademark of Accion International.